Guiding consumers since 2009

SA's retirment fund industry is tops

By Staff Writer

South Africa's retirement fund industry is ranked among the 15 largest retirement fund industries in the world, according to the Association for Savings and Investment SA (ASISA) and the Actuarial Society of SA.

A recently published study the parties involved said that the retirement fund industry has eight million members and assets that were under management were close to the value of R2 trillion.

"The independent study by Compass Management Consulting was commissioned by the savings and investment industry with the aim of providing much-needed information on the administration cost of pension schemes to help inform the retirement reform debate."

The study showed that, when you take into consideration the unique constraints to South Africa, the local standalone pension fund schemes were managed on a more cost effective basis than some of their international counterparts, especially in cases where schemes had less than 10 000 members.

Umbrella funds, on average, however, appeared to not have reached economically viable levels of operation, according to the statement.
The actuary behind the study, Anton Davies said that the South African umbrella business was made up of many small disparate schemes, often with their own sets of rules.

"The proliferation of these small funds is the result of South Africa's unique economic landscape, which has resulted in a magnitude of small entrepreneurial companies."

Leon Campher, the CEO of ASISA, said the study clearly highlighted some of the strengths and weaknesses of the country's retirement fund industry.
"The South African retirement fund industry often stands accused of being inefficient and expensive.

"While this study, which is work in progress, shows that South Africa compares well internationally, it also highlights areas that can be improved."

Recent Articles

Featured The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Mowana Voucher Special

Price: From R1,099
When: Before 24 December 2019
Where: Johannesburg

Birchwood Hotel Christmas Gift

Price: R959
When: Between 15 December 2019 to 1 January 2020
Where: Johannesburg

Burger & Lobster Lunch in 30 Minutes Special

Price: R99
When: Mondays
Where: Cape Town